Tenants f'd up my house

[bimmere92]

I have a question about house insurance. I currently have regular house insurance on my rental property and am wondering if it cover's damages caused by tenants... I assume it doesn't cover the damage due to it being occupied by renters and not myself but thought I would ask anyways... I think some of you guys might have some experience with this.

what options do I have? These guys really did a number on my place... holes in walls, missing cabinet doors, broken window and glass door, scuffed up hardwood etc.

I estimate the damage is in the $6 - 8G's range, which cannot be recuped by just the damage deposit.

[JordanLotoski]

insurance should cover vandalism.

[Kloubek]

Small claims?

[urban.one]

Youd need a police report for vandalism stating that someone broke into your house and did that damage.

Small claims? The tenants probably have no assets to go after and youd be lucky if they had a job to garnish wages from.

[Nitron88]

Report and file it as vandalism to the police. It is a crime whether you have insurance or not.

Too bad you dont have rental insurance.. this is an important area to not have it set up properly.

[bimmere92]

Originally posted by urban.one
Youd need a police report for vandalism stating that someone broke into your house and did that damage.

Small claims? The tenants probably have no assets to go after and youd be lucky if they had a job to garnish wages from.

yeah, vandalism is going to be hard to prove...

small claims is useless since these guys are broke and dont have shit to there name... but maybe it is worth considering?

what other options do I have? I have retained the DD obviously... but there is still significant damage done that has to be addressed before it can be rented/sold.

[masoncgy]

Insurance won't cover vandalism by tenants unless you have some kind of special coverage for such an occurrence, and I am not even 100% certain that such a coverage exists as I am not aware of it...

Your only hope is to take the tenants to court and sue them for the damages that fall beyond their security deposit.

[bimmere92]

Originally posted by Nitron88
Report and file it as vandalism to the police. It is a crime whether you have insurance or not.

Can you file vandalism against your tenants? and wouldnt you have to state to insurance that it was "vandalized" by your tenants?

[Nitron88]

Originally posted by bimmere92


Can you file vandalism against your tenants? and wouldnt you have to state to insurance that it was "vandalized" by your tenants?

The longer you take to report it, the more suspicious it becomes. Do you have photos to prove the condition of property prior to tenant move-in? You need to prove with reasonable cause that the tenants did not live in that property in those living conditions. Also that the damage was caused during their tenancy period. Not hard to prove if you had lined up your business accordingly.

All I can say is, don't give your tenants the upperhand and dont let them get away with their actions. Contact your nearest district and fill them in. Call the previous landlords as well and let them know the behaviour of these tenants so they have a hard time renting elsewhere.

[bimmere92]

Originally posted by Nitron88


You need to prove with reasonable cause that the tenants did not live in that property in those living conditions. Also that the damage was caused during their tenancy period.

Tenants didnt live there in that condition, it was in good condition prior to them moving in and that can be proved... and I can prove that the damage was caused during their tenancy period, but I still think insurance is gonna give me the cold shoulder.

How would I start a small claim?

[masoncgy]

You can't claim vandalism. That would end up as a case of insurance fraud. If you do not have a policy specifically covering damages done by occupying tenants, your insurance company isn't going to do anything but express their sympathies.

All you can do is bring in whatever contractor(s) necessary to give you a quote on how much to repair the suite back to it's previous condition, deduct the security deposit, and file a claim for the difference.

Start here:
http://www.albertacourts.ab.ca/Provi...6/Default.aspx

[spikerS]

this is what you can expect by trying to use residential properties as an investment.

[masoncgy]

Originally posted by spikers
this is what you can expect by trying to use residential properties as an investment.

Really? So what do you say about all of those people who have been successful with rental properties over all the years?

[spikerS]

Originally posted by masoncgy


Really? So what do you say about all of those people who have been successful with rental properties over all the years?

lucky.

all it takes is 1 bad set of renters to put you into bankruptcy. i would make the assumption that 90% of the houses that are rented in this city have mortgages very close to the assessed value of the property. 1 set of bad tenants can wreck a house in very short order to make it un-rentable, and require huge repair bills.

Tried and true method, if you must invest in real estate, the safest bet is commercial real estate, plain and simple.

[hattonlynch]

Originally posted by spikers


lucky.

all it takes is 1 bad set of renters to put you into bankruptcy. i would make the assumption that 90% of the houses that are rented in this city have mortgages very close to the assessed value of the property. 1 set of bad tenants can wreck a house in very short order to make it un-rentable, and require huge repair bills.

Tried and true method, if you must invest in real estate, the safest bet is commercial real estate, plain and simple.

this guy knows it all

[Fish n Chips]

Bimmer, I feel for you. Yr should report to the police to get a case #. Take some photos. I would try contact yr insurance com to see if they can cover. As Mason suggested, Provincial Court is the next best thing. But you have to be prepared:

1. Move in inspection report
2. Photos before move in
3. Police case #
4. Move out inspection without tenant's signature due to circumstances
5. Itemized estimate for damages

One good thing about provincial court is that, like the previous small claim court, you can represent yourself and the upper claim limit is increased to $25k.

Good luck.

I think there is nothing wrong using residential RE as an investment vehicle. Many people have great success on it. Focus on tenant screening, insist on check the rental history, employment status AND credit check. Don't ignore these just because of cash flow reason. In the long run, you will be a happy person.

[dino_martini]

Originally posted by spikers
this is what you can expect by trying to use residential properties as an investment.

You just have to be careful about who you rent your properties out to. If you have a good sense and feeling about people then I would say you are in the clear. Also I believe you are allowed to do inspections on the place while it is occupied every once and a while.

Just gotta be careful out there.

[Boat]

Lets see some pics!

[Xtrema]

Picking the right tenant is key. No frat boys, no blue collar, always at least 1 female involved.

And you buy the property with that in mind.

If you buy a 20 year old 900ft bungalow in NE, chances of good tenant will be slim to none.

[masoncgy]

Originally posted by Xtrema
Picking the right tenant is key.

Exactly... and that's why you don't gouge on the monthly rent and keep the price to the market... you get a ton of potential renters and you can screen out the trash and find yourself the ideal tenants.

Do your legwork too... employment checks, previous rental reference checks, etc... people who take on bad tenants often just let them go in without a proper interview & screening, and get burned because they only think about the rent money coming in...

I've been doing it for years... had one tenant who couldn't pay his rent on time and he was evicted... no issues ever since.